A spokesperson from Gov. Jerry Brown’s administration told the LA Times that the state presented several potential sites for the factory, all of which were rejected. Land prices and politics may be behind Tesla’s decision, according to the LA Times.

The company did not mention California as a location finalist in its presentation last month. Finalists are Nevada, Arizona, New Mexico, and Texas. The factory would send finished battery packs to Fremont, Calif., for vehicle assembly.

Tesla announced in February that it will spend $2 billion on a factory that will employ 6,500 people and produce lithium ion batteries for 500,000 vehicles per year. The factory will take about three years to build.